N.Y. Town Law § 55-a: Reserve funds for improvement districts

§ 55-a. Reserve funds for improvement districts. 1. The town board of

a suburban town, on behalf of any improvement district wholly located

within the town, may establish one or more reserve funds for the

financing of all or part of the cost of a "specific object or purpose"

or a "class of objects or purposes", as such terms are defined in

section 2.00 of the local finance law, which may be constructed,

reconstructed, acquired or provided by or on behalf of such district.

The authorization of the establishment of such a fund shall be subject

to a permissive referendum in the affected district and shall set forth

the estimated maximum cost of any such specific object or purpose or

class thereof.

2. There may be paid into such fund such an amount as may be provided

therefor by budgetary appropriation or such district revenues as are not

required by law to be paid into any other fund or account. Any amount

to be assessed, levied and collected in a district to provide money for

such a fund shall be assessed, levied and collected in the same manner

and at the same time as the amount to provide for the costs of operation

and maintenance of such district.

3. An expenditure may be made from such a reserve fund only by an

authorization of the town board and only for a specific object or

purpose or class thereof, the cost of which may be financed therefrom.

4. The town board may authorize the transfer to the credit of a

reserve fund created pursuant to this section for the district affected,

any unexpended balance remaining in another reserve fund created for

such district. If the object or purpose or class thereof for which the

latter fund was established has been completed, acquired or provided, a

sum sufficient to satisfy all outstanding claims arising from such

completion, acquisition or provision shall be retained in such fund and

not transferred.